The number of new registrations for systematic investment plans or SIPs slipped to a 13-month low of 750,000 in April.
Compared to March’s tally, it was 11 per cent less. As a result, the SIP closure ratio (the share of closure requests as a percentage of new SIPs) spiked to 72 per cent in April, from 70 per cent. At the same time, the number of closures saw some easing after crossing the 600,000-mark in March.
For April, closures dropped 10 per cent to 540,000. Industry participants say easing in closures is a positive sign. “Given the uncertainty in the markets, some investors are waiting on the sidelines, which has led to a lower number of new registrations,” said an executive of a fund house.
“We will have to see how these numbers move in the coming months, as lockdown conditions have taken a toll on the monthly income of clients,” said an MF advisor. The SIP contribution in April stood at Rs 8,376 crore, 3 per cent lower than the previous month.